How a Warren Buffett empire preys on the poor

How a Warren Buffett empire preys on the poor(seattletimes.com)

15 points by sheltgor 11 years ago | 2 comments

paulhauggis 11 years ago |

"Billionaire philanthropist Warren Buffett controls a mobile-home empire that promises low-income borrowers affordable houses. But all too often, it traps those owners in high-interest loans and rapidly depreciating homes."

How is this a trap? It allows low-income borrowers, who are high risk and have little income, access to something they wouldn't normally have: a home. Yes, it may depreciate, but it's not meant to be an investment..it's meant to provide a roof over someone's head.

I thought we were supposed to be getting rid of overly negative comments on HN. This article is written from a biased and overly negative perspective.

PhantomGremlin 11 years ago | |

You're misrepresenting the article. It gives multiple, clear, specific examples of the "trap".

Buffett's mobile-home empire engages in typical predatory practices, taking advantage of ignorant poor people. For example:

   But the closing documents he set before them
   held a surprise: The promised 7 percent interest
   rate was now 12.5 percent, with monthly payments
   of $1,100, up from $700.

Gotta hand it to Warren, he's got great PR people working for him. He cultivates an image of a folksy, down-to-earth elder statesman. He advocates feel-good social policies such as having the rich pay more taxes. He claims he runs his companies for the long term. But when push comes to shove, he has no qualms about making money from the "little people".